Stellantis Will Stop Buying EU Tax Credits From Tesla
Stellantis (NYSE: STLA), the global auto giant formed from the merger of Fiat Chrysler Automobiles (FCA) with French automaker PSA, said that it will no longer buy European environmental credits from electric-car maker Tesla (NASDAQ: TSLA).
The move is expected to save Stellantis about 300 million euros ($360 million). About two-thirds of that would have gone to Tesla, Stellantis's Chief Financial Officer Richard Palmer said.
The European Union requires automakers to build a minimum percentage of zero-emissions vehicles; those that build more than required can sell "credits" to other automakers that fall short. The system is similar to one used in California and other U.S. states. Tesla, which only makes electric vehicles, has been able to generate significant profit from the sale of these credits to other automakers.
Source Fool.com
